This is the part I don't understand. If it is certified to survive 1 meter for 30 minutes (or whatever it is) and it falls in my sink for 1 minute at 3 inches and the phone gets damaged, it seems like the warranty should cover it...
Or, more importantly, it get wet this week, sets off the sensor but stops working 9 months from now (probably from something unrelated), is that water damage?
Water resistance is a difficult thing, and with something as complex as the iPhone it can't be guaranteed to maintain it's water resistance over time. Here's a quote from Apples notes on water resistance: "Splash, water, and dust resistance are not permanent conditions and resistance might decrease as a result of normal wear."
For example, lets say over the course of a few months a few instances have flexed your phone slightly. This might cause micro damage to the adhesive seal. Then it gets submerged accidentally and water seeps in. This is one instance the warranty doesn't cover because the water resistance failed due to wear on the phone. I'm sure some people will argue that Apple then needs to make it more durable, but where does it end? If that were the case, screen cracks would be Apple's fault too.
FWIW, Samsung doesn't cover water damage to their phones either.